The member stands corrected, but I can understand his confusion. It is hard to find out what the government has done.
When I was first elected to this place in 1988, one of the first issues we dealt with was the softwood lumber crisis. It had been going on before I came here. One of the first battles we had was to educate the rest of the group on the fact that Atlantic Canada had an important industry and that it was unique and a little different than the rest of the industry across the country. The fact that the Department of International Trade made a proposal to the Americans that would sell out the Maritime exception was an example of the lack of understanding of the Maritime industry.
The U.S. industry claims that Canadian exports to the United States injures its business. It accuses Canada of selling our trees for less than market value. It is all about that. The Americans claim it is a subsidy. It petitioned the U.S. government for an interim countervail charge against the Canadian ministry. It said that Canadian provinces subsidized the forestry industry by selling its trees, logs and stumpage for less than the market price. It has been very successful in getting these interim countervail charges against the entire country.
However, the United States always has recognized that Atlantic Canada has different forestry practices and it has been exempt every time. I think it was 1981, 1986, 1991, 1996 and 2001 when the Americans acknowledged that the Maritime forestry industry and its practices were not countervailable because the practices were much the same as those in the U.S.
Seventy-five per cent of the lands that produce forestry products in Atlantic Canada are privately owned. Wood is marketed at market value. Even on government owned land wood is marketed at market value. The industry takes great steps to ensure that is the case.
The Maritime exemption has been recognized by different governments in the U.S. for years. In fact, they have considered a model of what the Canadian industry might look at if we were to avoid any of these countervail accusations and charges.
I want to make it very clear that the Maritime exemption does not come easy and it does not come cheap. The Maritime Lumber Bureau has established its own tracking system that satisfies the American authorities that every stick of lumber that comes out of Atlantic Canada has been grown in Atlantic Canada on Atlantic Canada land. There was an accusation that some lumber was being funnelled through Atlantic Canada from other provinces in Canada and that they were wrongly taking advantage of the Atlantic exemption.
The Maritime Lumber Bureau has invented a system to track every 2x4, every piece of wood that goes to the U.S. It can tell from what mill it has come and from what woodlot it originally came. That costs a lot of money. The bureau pays for it. It is entirely accepted by the American authorities. The bureau feels this ensures that the U.S. does not get subsidized lumber.
I can give the House another example of the price Atlantic Canada has paid to maintain this exemption.
Twice in the past the Government of Canada has offered compensation to cover legal costs in the softwood lumber battle. Both times Atlantic Canada has refused the money. It would rather not have the money than risk even an allegation of a subsidy. Atlantic Canada has chosen to pay the legal bills, and they have amounted to millions of dollars over the years it has been involved with this.
Atlantic Canada now sets the benchmark for forest practices. The Americans acknowledge that Atlantic Canada forest practices are not countervailable. It might be wise advice for other provinces to look at Atlantic Canada practices and try to emulate them. By doing so, we would not need another debate.
Each time we get into battle with the Americans we end up in litigation with the NAFTA panel and the WTO. Even if we win, we do not get a settlement. We recently won in the NAFTA tribunals. We lost one in the WTO but we won the most important ones at NAFTA and we are still here arguing about it. We are still paying the duties. We are still paying the billions of dollars to the U.S. because we have not been able to sort this out through litigation.
I have heard the term tonight and I have heard it a lot lately from the Liberals that we need a long term durable solution, and that is true, but the fact is, if the Americans suddenly had a revelation and said that they were wrong, that they accept the last NAFTA decision and that they will give all the money back, the very next day the U.S. industry would again petition its government and start the process all over again.
We need a long term durable solution. We need more than the Americans just accepting NAFTA decisions. We need to reach out to them. We need to start a process where we can negotiate a long term durable solution.
Yes, we need to ensure NAFTA is honoured and the agreement is kept but that is not enough. We need the Americans to move. We need to see some action on their part. I do not hear a lot about that. If we just accept the solution as being that the Americans accept the NAFTA decision, it will not be enough because they will just file another petition and start all over again. They will just take a different time period and away they go.
The government has to work a lot harder and do a lot more than just rattle its sabres and try to make the Americans live up to the NAFTA agreement. They have to start a process that will give us a long term durable solution.
I just received a letter that is only four days old. I just want to indicate where we are in this great debate with the Americans. The letter is from 21 prominent U.S. senators who wrote to Carlos Gutierrez, the Secretary of Commerce for the United States. One line reads, “There is no question that Canada subsidizes its lumber industry”. So We have not made a lot of progress.
The letter goes on to say:
NAFTA panel decisions cannot and should not force the Department to deny legitimate relief under U.S. law to the domestic lumber industry and its workers.
The letter is a very strong signal that even if something does happen and they accept the NAFTA agreement, they will be right back in the courtroom, right back in the tribunal and right back at the WTO unless we have a long term agreement to which we both agree. That has to be part of whatever we do next.
Imagine what we could do with all the money that is sitting in coffers in the United States. Imagine the health care improvements, the infrastructure improvements and the education improvements we could have if we had this money. We need the money here. We do not need it in the U.S. If we do not get it resolved, we are still sending money down every day.
In my opinion, all parties have to act in good faith. We have to honour NAFTA, but at the same time, we have to sit down and hammer out a long term and durable agreement that is acceptable to both sides. I do not mean just Canada and the U.S., but all of Canada has to agree to it as well. All provinces and regions have to be involved in the negotiations and the establishment of a deal. We had a deal before one time. One area of the country insisted that we renegotiate that deal and we are here today because of that.
We should start by trying to get some consensus and make sure we are all singing from the same song sheet and then arrive at a deal with the Americans . after they honour the NAFTA agreement. It has to be done. It is a signed, sealed and delivered agreement.
However that is not enough. We need to go on from there and negotiate a long term deal and it has to be representative of the interests of all of Canada. If there is one place where the government has failed, it has never has a unified position that represents all the interests in Canada. We have never had that through the years and years of negotiations. We have never had it and I do not believe we have it today.